Burnham Reshuffles Cabinet and Appoints John Healey as Chancellor

Published: July 21, 2026, 12:45 pm

A new government has officially taken office, with Prime Minister Andy Burnham and his senior ministers preparing to embark on a series of policy announcements and nationwide travel. The cabinet is scheduled to meet for the first time at lunchtime, following a late-night appointment process that saw Downing Street staff working well past 22:00 BST on Monday to finalize ministerial roles.

The reshuffle is marked by a notable shift away from figures previously aligned with former Prime Minister Sir Keir Starmer. Several key allies of the former leader, including David Lammy, Darren Jones, Peter Kyle, Lord Hermer, and Steve Reed, have been excluded from the new cabinet. Rachel Reeves was also reportedly offered a position but declined the role. Meanwhile, the position of defence secretary has been filled by Wes Streeting, whose earlier resignation as health secretary played a part in the erosion of Sir Keir Starmer’s leadership authority.

In a significant move, John Healey has been appointed as the new Chancellor of the Exchequer, bypassing widely discussed candidates such as Shabana Mahmood and Ed Miliband. Mr. Healey brings experience to the role, having served in the Treasury between 2002 and 2007 as both economic and financial secretary. However, his appointment is particularly striking given his recent, pointed critiques of the Treasury. As the former defence secretary, Mr. Healey previously described the Treasury as a "dead hand on dynamic government" and argued that it viewed defence spending as "a drain rather than a driver of growth." He also famously stated in his resignation letter that "I am certain that a headmark date for 3% of GDP on defence in 2030 is what Britain must set." Now, it is his job as chancellor to ensure those numbers add up.

Prime Minister Burnham enters office with an ambitious list of proposed policies, including a new council house building programme, adjustments to the income tax threshold, and a comprehensive shake-up of social care in England. While these proposals aim to provide "breathing space" for citizens struggling with the cost of living, they are expected to carry significant price tags. Mr. Burnham has promised that details regarding these measures, including how they will be paid for, will be announced straight away. It now falls to the Prime Minister and his new Chancellor to reconcile these ambitious goals with the realities of the national budget.

Its appointment became something of a nocturnal affair.

The ideas floated by Burnham in recent days have the feel of a Christmas wish list: ambitious but without the costs worked out yet.

Content: Collected | Source: BBC News